Apple now valued at over $100 billion

Posted:
in General Discussion edited January 2014
Apple Inc.'s market capitalization broke the $100 billion barrier for the first time on Wednesday, as shares of the company surged above $116 following a bullish research report from investment bank Morgan Stanley.



That puts the Cupertino-based company's perceived market value at nearly twice that of long-time rival Dell, which was valued at $59.8 billion as of noon eastern time, and approximately a third of that of Microsoft, which has been teetering around $295 billion.



Coincidentally, it will be ten years this October since Dell founder Michael Dell weighed in with his thoughts on how he would fix the then beleaguered Mac maker.



"What would I do? I'd shut it down and give the money back to the shareholders," he told a crowd of several thousand IT executives at the time.



Shares of Apple were helped Wednesday by a research report from Morgan Stanley analyst Katy Huberty, which asserted that the Mac maker's operating leverage remained underappreciated by investors.



In the report, Huberty raised her price target on shares of the company by more than 35 percent, from $110 to $150, but also laid out a "bull case" scenario that could see shares rising as high as $225 over the next twelve months.



Under that best case, the analyst said, U.S.-based Mac market share would need to appreciate to 5 percent in 2007 and 6 percent in 2008, while iPhone would need to see strong global penetration to 24 million units in 2008.



The bull case scenario would also hinge on Apple introducing an ultraportable Mac device by next January that would sell 3 million units within its first year, the analyst said.



Shares of Apple were trading up $2.62 (or 2.29 percent) to $116.97 in afternoon trading on the Nasdaq stock market.
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Comments

  • Reply 1 of 31
    buckbuck Posts: 293member
    Hmm... Already one third of Microsoft. That's a lot!
  • Reply 2 of 31
    melgrossmelgross Posts: 31,697member
    Up, up, and away!
  • Reply 3 of 31
    tbagginstbaggins Posts: 2,306member
    Heh heh heh... for fun, AppleInsider should trot some of the worst of the mass media 'beleaguered Apple' stories from the mid-to-late '90s. They would make for some hilarious reading now.



    Its really amazing how many wannabe tech-pundit 'Nostradumbasses' piled on back then, trying to sound smart by making what they thought was the safe prediction of Apple's demise.



    I'll bet less than 1% of those people ever came back later and said, "I was wrong." (and sure as hell Dvorak wasn't one of 'em). Ah well.



    --



    PS- This just in: The few remaining Apple-hating, pro-MS fanboys wept, joined hands, sang 'Kumbaya', and engaged in a group hug today, reminiscing about the 'good old days' of Apple's near-demise.



    "We had 'em", says prominent Apple-hater and forum troll Axel Nimrod Jr. "They almost went out of business in the '90s. But then stupid Jobs came back and ruined everything. Stupid iMac. Stupid OS X. Stupid iPod and iPhone. It should be a Dell-Vista-Zune world, and everyone knows it. Who cares if my computer or mp3 player is attractive and easy-to-use? Who cares how good the iPhone is? Microsoft has always been 'good enough' for me, in fact, 'good enough' is what they're all about."



    This reporter resisted the urge to bitch-slap Nimrod Jr., but just barely. Back to you Connie.



    .
  • Reply 4 of 31
    nerudaneruda Posts: 427member
    Well, I was telling people on these boards to buy when the stock was at around $50/share.



    I happen to be more bullish than most on the impact that the iPhone will have on the stock price, so $150 is a pretty safe/conservative upper range for the stock.



    At what price/share will the stock start being overpriced? Apple needs to continue gaining marketshare, release the true video iPods that everyone has been waiting for, and have better than expected iPhone sales. $150/share is a given, though.
  • Reply 5 of 31
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by Neruda View Post


    At what price/share will the stock start being overpriced? Apple needs to continue gaining marketshare, release the true video iPods that everyone has been waiting for, and have better than expected iPhone sales. $150/share is a given, though.



    That's all subjective. I wonder if it's a little steep right now, though it appears the Mac platform might be growing at the fastest rate ever, so it could still be a good value. iPhone expectations are in the price, and it's not out yet. Almost no one has printed a review of the final product. If, hypothetically, someone like Mossberg said don't buy it, then maybe there will be a major drop of the stock, but I really don't expect that. I think Apple gives Mossberg about a week to play with new devices, hopefully he'll tell us whether there are any significant problems.
  • Reply 6 of 31
    nceencee Posts: 836member
    I bought my shares many years ago, for A LOT less then $50.00 per share



    Skip



    PS Buy=t I wasn't smart enough to buy 1,000's of shares ? for that I will kick myself in the ass. I have a lot, but nowhere near what I'd like to have
  • Reply 7 of 31
    SpamSandwichSpamSandwich Posts: 31,131member
    Quote:
    Originally Posted by ncee View Post


    I bought my shares many years ago, for A LOT less then $50.00 per share



    Skip



    PS Buy=t I wasn't smart enough to buy 1,000's of shares ? for that I will kick myself in the ass. I have a lot, but nowhere near what I'd like to have



    I can sympathize... we'd all be retired now if only we had the foresight.
  • Reply 8 of 31
    nceencee Posts: 836member
    Quote:
    Originally Posted by SpamSandwich View Post


    I can sympathize... we'd all be retired now if only we had the foresight.





    Now to figure out who will be the next Apple (stock to buy)



    It would seem like, with all of the digital stuff going on, that a memory company would be a safe bet???



    Heck, maybe any of the companies tied in with Apple on any of their products ?



    Skip
  • Reply 9 of 31
    melgrossmelgross Posts: 31,697member
    Quote:
    Originally Posted by SpamSandwich View Post


    I can sympathize... we'd all be retired now if only we had the foresight.



    Ah ha!
  • Reply 10 of 31
    SpamSandwichSpamSandwich Posts: 31,131member
    Quote:
    Originally Posted by melgross View Post


    Ah ha!



    Of course, mel has us all beat!
  • Reply 11 of 31
    boogabooga Posts: 1,077member
    Quote:
    Originally Posted by Buck View Post


    Hmm... Already one third of Microsoft. That's a lot!



    What's more, according to finance.google.com, if you bought MSFT in January of 2000, you'd be down 50% on your investment, while if you bought AAPL at the same time, you'd be up 350%. If you bought in Jan 2004, it's break-even for MSFT and up 1000% for Apple.
  • Reply 12 of 31
    samurai1999samurai1999 Posts: 274member
    Quote:
    Originally Posted by Booga View Post


    What's more, according to finance.google.com, if you bought MSFT in January of 2000, you'd be down 50% on your investment, while if you bought AAPL at the same time, you'd be up 350%. If you bought in Jan 2004, it's break-even for MSFT and up 1000% for Apple.



    Way to go Apple!

    - Greatest comeback in History!





    Man, I wish I had the wisdom to buy APPL in 2004!

    - I was still in the skeptical camp until I bought my 1st iPod (a mini - 2005)

    - it's a cliche - but it converted me



    - and with the Intel Macs & iPhone, it doesn't feel like it's a bubble that's about to burst anytime soon!



  • Reply 13 of 31
    g5mang5man Posts: 91member
    Folks it is not too late to get in on a very good long term investment.



    Apple stock is still very cheap. At the rate that the company is growing, the stock will hit $400 by end of 2010. So if you look back 2.5 years from now you will wonder why you did not buy some shares.



    The iPHone will create a halo affect much bigger than the iPod. In three years when the iPhones are about $250 a piece and Apple sells its 20th million iPhone, we will start seeing some serious market share gains for Apple Computers.
  • Reply 14 of 31
    macgregormacgregor Posts: 1,434member
    Quote:
    Originally Posted by SpamSandwich View Post


    I can sympathize... we'd all be retired now if only we had the foresight.



    Unfortunately for most of us it had nothing to do with foresight - it had to do with having the money to invest in the first place.



    Congrats to all who did, but don't waste thread space describing how intelligent you were when intelligence is only half the equation.
  • Reply 15 of 31
    hmurchisonhmurchison Posts: 12,268member
    Well it's time for Apple to buy some companies





    1. Buy Microsoft

    2. Buy Adobe

    3. Buy Autodesk



    Take over the WORLD.
  • Reply 16 of 31
    anantksundaramanantksundaram Posts: 19,163member
    Quote:
    Originally Posted by hmurchison View Post


    Well it's time for Apple to buy some companies





    1. Buy Microsoft

    2. Buy Adobe

    3. Buy Autodesk



    Take over the WORLD.



    I am intrigued: What would they do with Autodesk? What might be the synergies?
  • Reply 17 of 31
    melgrossmelgross Posts: 31,697member
    Quote:
    Originally Posted by Booga View Post


    What's more, according to finance.google.com, if you bought MSFT in January of 2000, you'd be down 50% on your investment, while if you bought AAPL at the same time, you'd be up 350%. If you bought in Jan 2004, it's break-even for MSFT and up 1000% for Apple.



    I made a lot of money on Apple in the late '90's. Lost almost 20% in 1999, before I sold out that, and my other investments.



    I was thinking of buying in again when the price dropped to $3.



    Now I'm really sorry I didn't.



    I can't complain though, as I did buy in again at $16.93 pre-split.



    My investment in Apple from that time went from five figures to its present seven.
  • Reply 18 of 31
    melgrossmelgross Posts: 31,697member
    Quote:
    Originally Posted by g5man View Post


    Folks it is not too late to get in on a very good long term investment.



    Apple stock is still very cheap. At the rate that the company is growing, the stock will hit $400 by end of 2010. So if you look back 2.5 years from now you will wonder why you did not buy some shares.



    The iPHone will create a halo affect much bigger than the iPod. In three years when the iPhones are about $250 a piece and Apple sells its 20th million iPhone, we will start seeing some serious market share gains for Apple Computers.



    The stock isn't cheap. It's worth just about what it should be.



    If Apple does make a big success with its new product lines, and continues to increase its present ones at about the same pace, then the company will be worth much more, and the stock price will reflect that.
  • Reply 19 of 31
    melgrossmelgross Posts: 31,697member
    Quote:
    Originally Posted by MacGregor View Post


    Unfortunately for most of us it had nothing to do with foresight - it had to do with having the money to invest in the first place.



    Congrats to all who did, but don't waste thread space describing how intelligent you were when intelligence is only half the equation.



    You're right. Some of it is luck.



    But, it's also the willingness to remain with the stock as it continued to rise, rather than sell out, and take the money, or buy "puts".
  • Reply 20 of 31
    melgrossmelgross Posts: 31,697member
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